Meta Plans $95 Billion Fundraising Drive to Fuel AI Expansion

Meta Platforms has announced plans to raise up to $95 billion through its largest-ever equity fundraising initiative as the Facebook parent accelerates investments in artificial intelligence infrastructure. The company has launched public offerings worth approximately $35 billion in common and preferred stock and plans a separate at-the-market share sale programme of up to $60 billion. The larger offering is expected to begin after its new non-voting Class C shares start trading in the first quarter of 2027, although the final timing and terms remain undecided.

The fundraising plan has attracted investment interest of up to $5 billion from chipmakers Nvidia, Advanced Micro Devices and Broadcom for Meta’s Class A shares, raising concerns about circular financing in the AI industry, where suppliers help fund major customers. Meta has committed to spending approximately $825 billion in the future, largely on data centres, AI infrastructure and computing capacity. The heavy spending has significantly strained its finances, with the company reporting a $2.12 billion cash burn in the third quarter, its first negative free cash flow in more than a decade, compared with positive cash flow of $10.63 billion a year earlier.

Despite mounting costs, Meta continues to invest aggressively to compete with OpenAI and Anthropic, supported by growing interest in its AI agent Muse and new AI models. The company recently raised the lower end of its 2026 capital expenditure forecast to between $135 billion and $145 billion. As of September 30, Meta held $82.45 billion in cash, cash equivalents and marketable securities, against $80.92 billion in long-term debt. The fundraising move reflects a broader shift among major technology companies towards equity and debt markets to finance the escalating costs of AI development and infrastructure.

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